For 2019 Plan Year: Jan. 1 – Dec. 31, 2019

Extended Open Enrollment Deadline: November 28, 2018 11:59 PM

Why has the FSA Open Enrollment period been extended?

On Thursday, November 15, the IRS announced an increase to the 2019 maximum allowable annual Health Care FSA contribution to $2,700. In order to ensure you are able to take advantage of the maximum amount allowed by the IRS, we decided to extend the deadline.

If you would like to make the most of this 2019 Health Care FSA increased annual limit of $2,700 or simply enroll, you have the opportunity to log back in to the FSA Open Enrollment system until Wednesday, November 28, 2018 to make this change.

Be sure to print your Confirmation Statement for proof of enrollment!

Does this mean I need to re-enroll in FSA for 2019?

If you have already made your 2019 FSA election and do not wish to change it, you do not need to log back in to FSA Open Enrollment in LoboWeb.

Did you print your Confirmation Statement as proof of enrollment?

Please note that the maximum allowable election for the Dependent Care FSA has not changed. The increase applies to the Health Care FSA only.

Open Enrollment is your opportunity to enroll in one or both of UNM’s offered FSA plan(s).

If you want to participate in an FSA in 2019, you MUST enroll online during this 2018 FSA Open Enrollment period. Enrollments are effective Jan. 1, 2019.

If you are currently enrolled in the benefit and would like to participate in an FSA in 2019, you MUST re-enroll during this Open Enrollment.

What is an FSA?

FSAs allow you to set aside part of your paycheck to reimburse yourself for IRS qualified expenses. FSA contributions are taken on a pre-tax basis (which should reduce your federal, state, and social security taxes). Reimbursements to you are not taxable.

Dependent Care FSA allows reimbursement of qualifying out-of-pocket expenses related to dependent child (under age 13, unless disabled) or elder day care. This benefit may make sense if you (and your spouse, if married) are working or in school.

It is very important that you review the Open Enrollment and plan information provided before you enroll, so you can make educated decisions about the options available to you.

HEALTH CARE FSA $500 Carry-Over Feature

Health Care FSA elections feature a $500 Carry-Over provision. This means that up to $500 of unreimbursed 2018 Health Care FSA expenses will carry over to 2019 and beyond. Participants must remain benefits-eligible to access carry-over funds.

The Health Care FSA Carry-Over does not affect an employee’s ability to elect the maximum annual election of $2,650. If unreimbursed funds of up to $500 are added to the following year’s election and an employee elects to contribute the maximum $2,650 in that year, a total of $3,150 would be available for reimbursement of eligible health care expenses that year.

Per the IRS “use it or lose it” rule, you will forfeit any remaining funds in your account in excess of the $500 Carry-Over maximum.

The Carry-Over provision applies to Health Care FSA ONLY. It does not apply to Dependent Care FSAs, and is limited by the IRS for Health Care FSAs only. See DEPENDENT CARE FSA GRACE PERIOD for more details on unused dependent care FSA funds.

DEPENDENT CARE FSA Grace Period

Dependent Care FSA Enrollment includes a Grace Period for unused Dependent Care funds that remain in your account at the end of 2018. If you were actively enrolled in the 2018 FSA plan year through Dec. 31, 2018, you may use these existing 2018 FSA funds for dependent care expenses incurred before March 15, 2019. Otherwise, you will forfeit remaining 2018 funds in the account.

Claim expenses incurred through March 15, 2019 must be received by May 31, 2019 by our FSA administrator (SHDR - Stanley, Hunt, Dupree and Rhine) for reimbursement for the prior calendar year. Per the IRS “use it or lose it” rule, you will forfeit any remaining funds in your account after the Grace Period ends (March 15, 2019).

HOW TO ENROLL

Before accessing FSA Open Enrollment, you must be enrolled in Duo. Duo is a two-factor authentication security process needed to view or make changes to your sensitive information in LoboWeb. Duo adds a second layer of security to your online accounts.

IMPORTANT NOTE: Anticipated Change for 2020 FSA Plan Year

As you prepare for your 2019 FSA election, we also want to let you know of a change to expect with FSA for 2020.

We anticipate changing the FSA plan year for Dependent Care and Health Care from calendar year to fiscal year in 2020. This change will align the FSA with the plan year for medical, dental and vision to help you better coordinate your health care needs for your Health Care FSA. In order to accomplish this change, the Open Enrollment in the fall of 2019 will be for a shortened FSA plan year from January 1 through June 30 of 2020. We will then include FSA again during Open Enrollment in the spring of 2020 for the July 1, 2020 through June 30, 2021 Plan Year.

We are communicating the FSA plan year change for 2020 now to help you best plan for your health care needs. We will continue to communicate this upcoming change throughout 2019 as details emerge to better prepare you in how to consider planning ahead for 2020/2021.